How Will Blockchain Technology Impact Auditing and Accounting: Permissionless versus Permissioned Blockchain

Liu, Manlu; Xu, Jennifer

doi:10.2308/ciia-52540

Cited by 151 publications

(104 citation statements)

References 13 publications

(10 reference statements)

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“…The only source of accounting data is guaranteed, and the accounting data cannot be falsified [86] The only source of auditing data is guaranteed, and the audit data cannot be falsified [87] Distributed ledger (Decentralized) [80] Enhance transaction transparency Improvement in the transparency of accounting information [81] Improvement in the authenticity and reliability of audit data [82] Timestamp [83] Clear transaction order Improvement in the difficulty of changing data and retain permanent accounting records [80] Improvement in the reliability and timeliness of audit data, and lay a solid foundation for continuous audit and real-time audit [84] Network consensus [85] Verify transaction legality Improvement in accounting efficiency; provision of real-time transaction clearing or settlement [88] Improvement in the authenticity, reliability and timeliness of audit data, and lay a solid foundation for continuous audit and real-time audit [89] Programmable [90] None…”

Section: A Blockchain Technologymentioning

confidence: 99%

“…Intelligentization of accounting business processing through programmability, setting accounting algorithms or accounting business processing rules [80] Intelligentization of audit work through programmability, setting audit algorithms or auditing business processing rules [91] more convenient to obtain audit request information through the blockchain network, and audit requests can achieve minute-level or even second-level responses, which can save information collection and finishing time, thereby improving audit work efficiency [88]. On the other hand, the consensus mechanism for blockchain enables all data to be jointly confirmed the first time, which can guarantee the timeliness and accuracy of the data.…”

Section: A Blockchain Technologymentioning

confidence: 99%

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The Impact of Artificial Intelligence and Blockchain on the Accounting Profession

et al. 2020

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Recent developments in technology have introduced dramatic changes to the practice of the accounting profession. This paper provides a comprehensive review of current developments in big data, machine learning, artificial intelligence, and blockchain utilized in general business practice and by specialized practitioners in the accounting profession worldwide. This paper explores the evolution of the accounting profession following these recent technological developments and assesses the impact of future developments. Inherent challenges and opportunities posed by these new technologies pertaining to accounting professionals and accounting educators are also examined, including an increased demand for IT professionals with accounting experience as opposed to accounting major graduates. Considering the dramatic changes and developments of AI applications in accounting, this paper reflects how all these technologies and the associated requirements of job candidates will affect the desired capabilities of accounting graduates and provides further discussion regarding what higher institutions and their accounting graduates can do to adopt such changes.

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Section: A Blockchain Technologymentioning

confidence: 99%

Section: A Blockchain Technologymentioning

confidence: 99%

The Impact of Artificial Intelligence and Blockchain on the Accounting Profession

et al. 2020

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“…Audit automation tools were used in a study [4] on SQL tuning [18] and a study [5] on data quality analysis. These studies analysed the database structure, inspected the effects of logical and physical data consistency and the data structure on the performance of SQL tuning and a data quality analysis, and proposed measures to improve performance through the application of audit automation tools.…”

Section: Studies On Audit Automationmentioning

confidence: 99%

Technology-based Practical Blockchain System Audit Maturity Model

2021

Teh. vjesn.

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Information system auditing can reveal the quality of such systems, and standard audit items are crucial elements of system and audit quality. Blockchain technology is currently being applied to various areas including the financial, manufacturing, healthcare, distribution, and public sectors, and an increasing number of systems that apply such technologies are also being developed.The current audit model is insufficient for application in the field, and the auditing of systems applying new technologies, such as blockchain, has not been given sufficient attention. Furthermore, it is difficult to evaluate the relative levels of audited systems using audit results. Existing studies have only examined the auditing of systems that apply blockchain. Although the Korea Association of Information Systems Audit has suggested a checklist for systems applying blockchain, it has yet to be adopted. To address this problem, 50 existing audit result reports and technical data were collected, from which sixteen factors of four audit quality properties consisting of blockchain system, technology compliance, software quality, and document were derived. Furthermore, an audit maturity model was presented after evaluating the priorities of the 16 derived factors. The results of the evaluation of the priorities of audit items indicated that auditors give a higher importance to technology-based than document-based audits of information systems. This study contributes to the literature by deriving field-oriented audit items including blockchain technology, thus enabling practical audits to be conducted in a short time. Further, this study enables the maturity of systems to be compared based on audit results by presenting audit maturity.

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“…The compliance with GDPR with respect to this issue calls for the use of permissioned BC platforms. BC platforms are indeed currently deployed as permissioned and permissionless [14]; permissioned BC needs prior approval from one entity before taking part to it, whereas permissionless BC lets anyone participate in the system. In permissioned BC, the identity of participants is known in permissionless BC, participants are anonymous.…”

Section: A Challenges In the Implementation Of Demand Response Programsmentioning

confidence: 99%

Demand Response Service Certification and Customer Baseline Evaluation Using Blockchain Technology

et al. 2020

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The use of Distributed Ledger Technologies such as Blockchain for certifying Demand Response services allows for the creation of a distributed system in which customers can communicate with the system operator to provide their flexibility, in a secure, transparent and traceable way. Blockchain technology also supports incentive mechanisms for users taking part in the service through the generation of utility tokens to recognize the user's contribution. This paper presents the experimental test of a novel methodology for Demand Response programs implementation by using the Blockchain technology. The latter is employed for defining a distributed Demand Response service and a new system for its tracing and certification. For this work, a Smart Contract has been conceived and written to execute Demand Response events, calculate users' baseline, compute the support provided by each user towards the fulfilment of the requested load curve modification and remunerate each user with utility tokens proportionally to their contribution. To test the methodology, a Hyperledger Fabric network and a Smart Contract were deployed on four nodes of the Microgrid Laboratory of the Department of Energy Technology at Aalborg University (DK). Subsequently, a realistic scenario comprising two consumer nodes was developed using power electronic converters for generating the household profiles and Smart Meters for the measurement of the consumption profiles. Theoretical and experimental results show the feasibility of Distributed Ledger Technologies in smart grids management with a minimum investment in new hardware while enabling the active participation of customers in Demand Response more transparently and fairly.

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How Will Blockchain Technology Impact Auditing and Accounting: Permissionless versus Permissioned Blockchain

Cited by 151 publications

References 13 publications

The Impact of Artificial Intelligence and Blockchain on the Accounting Profession

The Impact of Artificial Intelligence and Blockchain on the Accounting Profession

Technology-based Practical Blockchain System Audit Maturity Model

Demand Response Service Certification and Customer Baseline Evaluation Using Blockchain Technology

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